Transparency International Bangladesh (TIB) has expressed grave concern regarding the independence of newly appointed Governor of Bangladesh Bank Mostaqur Rahman, questioning his ability to discharge responsibilities while rising above potential conflicts of interest.
The anti-graft organisation raised questions over how a readymade garment and real estate entrepreneur – who previously rescheduled loans for his own company under special consideration – will be able to perform his duties impartially.
TIB noted that the role requires ensuring inflation control, financial sector stability, and good governance in the banking sector, free from corporate influence.
In a statement issued on Thursday, TIB Executive Director Dr Iftekharuzzaman said the newly appointed governor’s experience in the banking sector is primarily as a borrower and a loan defaulter who subsequently benefited from special loan rescheduling.
He further highlighted the appointee’s significant roles in influential business lobbies, including the readymade garment sector, the real estate sector, the Association of Travel Agents of Bangladesh (ATAB), and the Dhaka Chamber.
Dr Iftekharuzzaman questioned whether the “hastily” appointed Governor could fulfil public expectations of restoring a banking sector that fell into disarray during the previous “authoritarian kleptocratic regime.”
He pointed out the inherent risks of appointing a loan-defaulting businessperson in a context where nearly 60 per cent of Members of Parliament and 62 per cent of the Cabinet are primarily businesspersons.
Around 50 percent of MPs are loan defaulters, with outstanding recoverable loans surpassing all previous records, Iftekharuzzaman went on to claim.
The statement noted that this is the first time in the country’s history that a businessperson has been appointed as Governor of Bangladesh Bank.
Dr Iftekharuzzaman warned that such a decision risks turning the central bank once again into an instrument of business lobbies dependent on defaulted loans and political connections, rather than a safeguard for the national interest.
TIB also questioned the prudence of entrusting the central bank’s leadership to a member of the ruling party’s election management committee.
Dr Iftekharuzzaman asserted that the appointment constitutes a “clear breach” of the BNP’s electoral commitment to ensure good governance, transparency, and oversight in the financial sector, as pledged in its manifesto.
He reminded the government of the fragile state of the banking sector under the fallen regime, where partisan considerations facilitated money laundering and soaring defaulted loans.
The effectiveness of this appointment remains questionable at a time when attracting foreign investment and ensuring good governance are critical amid ongoing economic challenges.
TIB raised doubts about whether the new Governor can take independent and impartial decisions to control inflation or take punitive action against weak banks that protect personal interests.
Dr Iftekharuzzaman concluded by questioning the extent to which the central bank can function independently following the 2024 mass uprising, which generated high public expectations for an independent central bank free from partisan and influential business interests.
